Toshiba Shares Gain On Reports Of Potential $19B Takeover Bid

  • A domestic investor-led group was looking at a $19 billion bid for Toshiba Corp TOSYY - a potential deal that would likely lead to foreign activist shareholders being bought out after years of tension.
  • Toshiba and activist shareholders have been at odds over the company's direction, with several large foreign funds pushing the conglomerate to consider private equity bids.
  • A consortium led by private equity firm Japan Industrial Partners has been a preferred bidder, Reuters reported citing a source familiar with the matter.
  • ORIX Corporation IX and Chubu Electric Power Co are also considering joining, said another source familiar with the matter.
  • The bid figure of 2.8 trillion yen cited by the Kyodo news agency represents a premium of 26% to Wednesday's closing price.
  • Toshiba shares were up 7% in afternoon trade, on track for their biggest one-day gain in more than a year. They have risen about 17% this year.
  • "It looks like people bought into the idea that there won't be more bad news," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management.
  • It was not immediately clear how many bids Toshiba was seriously considering. But the takeover contest is probably still an open race between Japan Industrial Partners and state-backed Japan Investment Corp, said Travis Lundy, a Quiddity Advisors analyst.
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